Vice President Kashim Shettima has officially welcomed ExxonMobil‘s ambitious plan to invest $10 billion in the country’s deep-water oil operations.
This announcement was made during a high-profile meeting with ExxonMobil executives at the ongoing 79th Session of the United Nations General Assembly in New York, marking a pivotal moment for Nigeria’s economic landscape.
Shettima characterized the investment as a testament to the Tinubu administration’s commitment to fostering an investor-friendly environment. He emphasized that this potential investment aligns seamlessly with President Bola Tinubu’s vision for a revitalized Nigerian economy. “We are committed to creating an enabling environment for such transformative projects,” he stated, underscoring the government’s dedication to enhancing the ease of doing business in Nigeria.
The Vice President outlined several key reforms initiated by the administration, including the unification of exchange rates, removal of fuel subsidies, and implementation of tax reforms. These measures are designed to stabilize and predictably enhance Nigeria’s business environment, despite some short-term challenges. “These decisions are aimed at creating a more stable and predictable business environment in the long run,” Shettima explained.
ExxonMobil’s Chairman and Managing Director in Nigeria, Shane Harris, reaffirmed the company’s long-standing commitment to the Nigerian market. He highlighted that the centerpiece of their new strategy is the Owo project, a substantial subsea tie-back that could represent the entirety of the $10 billion investment. “As we celebrate 70 years of oil production and eight billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities,” Harris declared.
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The investment is particularly noteworthy given ExxonMobil’s plans to divest from its onshore assets, redirecting focus towards offshore operations—a trend that reflects broader shifts within the industry. Harris noted that ExxonMobil intends to inject $1 billion annually into maintenance operations and an additional $1.5 billion aimed at increasing production by 50,000 barrels per day over the next few years.
Shettima also addressed concerns specific to the oil and gas sector, mentioning that the government is actively revising fiscal frameworks for deep-water operations. The goal is to strike a balance between attracting foreign investments and ensuring fair returns for Nigerians. “The potential ExxonMobil investment is a clear indication that we are moving in the right direction,” he remarked.
In addition to ExxonMobil’s plans, international maritime giant, DP World, has announced intentions to develop a multibillion-dollar port project in Nigeria, further signaling confidence in Nigeria’s market potential. Sultan Ahmed bin Sulayem, DP World’s Group Chairman and CEO, expressed optimism about Nigeria’s vast import and export market as a key factor driving their investment decisions.
As Shettima concluded his remarks, he reiterated that Nigeria is open for business and ready to welcome investors from around the globe. “We are witnessing a total rejuvenation in terms of economic policies aimed at freeing up the economy and making way for a free, fair, and enduring market,” he assured potential investors.
This landmark investment from ExxonMobil not only signifies a renewed commitment from one of the world’s largest oil companies but also reflects broader economic reforms aimed at revitalizing Nigeria’s oil sector amidst global shifts towards sustainable energy practices.
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